Yard Designs (YD) experienced the following events in Year 1, its first year of operation: 1. On October 1, Year 1, YD collected $22,800 for consulting services it agreed to provide during the coming year. 2. Adjusted the accounts to reflect the amount of consulting service revenue recognized in Year 1. Required: Based on this Information alone: a. Record the events under an accounting equation. Note: Enter any decreases to account balances with a minus sign. YARD DESIGNS Accounting Equations for the Year 1 Stockholders' Assets Liabilities + Event Cash Unearned Revenue + Equity Retained Earnings Advance payment Revenue earned + 0 = 0+ 0 b. Prepare an income statement, balance sheet, and statement of cash flows for the Year 1 accounting period. Note: In statement of cash flows, cash outflows should be indicated with a minus sign. YARD DESIGNS Income Statement For the Year Ended December 31, Year 1 $ 0 Assets YARD DESIGNS Balance Sheet As of December 31, Year 1 Total assets Liabilities Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity EA $ $ EA 0 0 0 $ $ 0 YARD DESIGNS Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance $ 0 0 $ 0 c. Ignoring all other future events, what is the amount of service revenue that would be recognized in Year 2? Service revenue to be recognized in Year 2